Australia’s inability to close top M&A deals is becoming a growing frustration. The collapse of Abu Dhabi National Oil Company’s (ADNOC) $18.7 billion takeover bid for Santos (OTCPK: SSLZY) (the nation’s biggest supplier of natural gas) earlier this month is just the latest example. Valuation disputes, regulatory hurdles, and unexpected revelations are making Australia one of the most challenging places in the world to finalize big-ticket deals.
“While the Consortium maintains a positive view of the Santos business, a combination of factors, when considered collectively, have impacted the Consortium’s assessment of its indicative offer,” ADNOC’s investment arm XRG said in the statement last week. The combination considered included capital gains tax questions, regulatory uncertainty, and a reputational blow from a methane leak story that broke at the worst possible time.
